Pa. accuses debt company of deceiving consumers Main Headline

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Oct 30, 2010 at 12:01 AM

ERIE (AP) — A debt collection agency used phony hearings in a room decorated to look like a courtroom to collect money from unsuspecting consumers, according to a lawsuit filed Friday against the company by the state.

ERIE (AP) — A debt collection agency used phony hearings in a room decorated to look like a courtroom to collect money from unsuspecting consumers, according to a lawsuit filed Friday against the company by the state.

The attorney general's Bureau of Consumer Protection is seeking restitution for consumers in the civil lawsuit filed in Erie County Court against Unicredit America Inc., also known as the Unicredit Debt Resolution Center.

The lawsuit alleges the company used people appearing to be sheriff's deputies to deliver hearing notices to consumers and used fake court proceedings to get money from them. The company summoned people to an office in Erie that employees called "the courtroom," the state said.

"This is an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments or surrendering valuables to Unicredit without following lawful procedures for debt collection," Attorney General Tom Corbett said.

The company didn't immediately return a call for comment Friday.

According to the state, the company set up a room at their Erie office that appeared to be a courtroom, complete with a raised area where a judge would sit, attorneys tables and legal books on bookshelves. A person dressed in black would sometimes sit in the position of the judge, the state said.

The state has also asked the court to immediately freeze the company's assets and stop holding hearings, among other things. A hearing on the request is scheduled for Dec. 13.

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